Stocks showed a mixed performance on Tuesday morning as investors sought to recover from a turbulent start to the week. The Dow Jones Industrial Average dropped by 42 points, representing a 0.1% decline. In contrast, the S&P 500 managed to gain 0.4%, while the Nasdaq Composite saw an increase of 0.5%.
The previous day had been particularly challenging for Wall Street, with a widespread selloff in stocks, losses in cryptocurrency and oil markets, and technical glitches on trading platforms. Both the Dow and the S&P 500 recorded their most significant daily percentage losses since 2022 following concerns triggered by a disappointing July jobs report, raising doubts about the stability of the US economy. The Dow plummeted by over 1,000 points, marking the 15th time in history it has experienced such a significant drop.
The Fear and Greed Index, which tracks seven market sentiment indicators, indicated an 'extreme fear' reading on Tuesday morning. Meanwhile, the Cboe Volatility Index (VIX), a measure of expected stock market volatility, decreased to 32 after reaching highs above 65 on Monday.
On a more positive note, Japan's Nikkei 225 index managed to recover by 10% on Tuesday, recouping some of the losses incurred the previous day. However, oil prices continued their downward trend, with West Texas Intermediate crude futures falling by 0.8% to $72.38 per barrel, and Brent crude futures, the international benchmark, slipping by 0.7% to $75.75 per barrel.
